I've been doing it for a while. Yes, publish and subscribe should work fine.
so let's see here.... for webdav you select a domain in the web panel first. Click Enable WebDAV on a New Directory.
You should create a new directory where you want it, IIRC.
Then type in that name in the "on:" field.
I would also password protect that field (very happy they added that option).
Then give it a username and password (username[space]password)
Then you click on enable. Notice the note at the bottom Warning: WebDAV enabled directories will not be owned by you,
and so cannot be accessed via FTP or the shell.. only through WebDAV!
I think this takes a little bit to setup, but that time should have passed for you.
In iCal, got to Calendar: Publish... then enter http://yourdomain.com/folder
select your settings
Change the Publish calendar drop-down to "on a webdav server"
Hit publish and that should do it.